MIDAS SHARE TIPS UPDATE: Kitchen tip Howden is up 81% and prepares some more tasty results
Kitchen firm Howden Joinery Group also said last week that 2014 had been better than expected and its results would be above market forecasts.
The shares rose almost 5 per cent in two days, as analysts scrambled to update their numbers and share price targets.
Midas recommended Howden in March 2013, when the stock was 227p. Today the price is 81 per cent higher at 409¾p and brokers believe there is more to come. Howden has benefited from the housing market recovery, improving consumer confidence and an increase in market share.
Boost: Howden's sales rose 14 per cent last year to almost £1.1billion
The group works exclusively with tradesmen and is the leading supplier in this sector, with more than 550 depots around the country.
Builders like the business because service is good, they can pay by credit and products are reliable. Consumers like the kitchens because they are reasonably priced and decent quality.
Last Thursday, chief executive Matthew Ingle said 2014 sales would be 14 per cent ahead of 2013 at just under £1.1billion and that profits would be higher than forecast.
In 2013, Howden delivered profits of £138million and brokers had already pencilled in a significant gain to £175million for last year. Now, they have increased their expectations to about £185million for 2014 and around £205million for the current year.
The dividend should also show good growth from the 2013 payout of 5.5p.
Midas verdict: Investors have done well from this stock and may choose to bank some profit and sell 25 per cent of their shares to pay off a few Christmas bills. But they should retain most of their holdings. The business is doing well and the shares should deliver further growth this year and beyond.
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